Altech Batteries Ltd Stock Market Press Releases and Company Profile
Altech sells Exploration Licence for $2.0 Million cash
Altech sells Exploration Licence for $2.0 Million cash

Perth, May 9, 2016 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) is pleased to announce that it has executed an agreement with Dana Shipping and Trading S.A. (Dana) for the sale of exploration licence E70/3923 (excluding mining lease application M70/1334, owned by Altech) at Meckering, Western Australia for $2.0 million.

Highlights:

- Sale of surplus exploration license for $2 million

- Dispute over termination of Kaolin Mining Rights Deed with Dana settled

- Altech retains ownership of mining lease application M70/1334 for its Malaysian HPA project

- Imminent grant of M70/1334

The exploration licence is surplus to Altech's feedstock requirements for its proposed Malaysian high purity alumina (HPA) plant. Feedstock for the plant will be sourced from within M70/1334 which contains an estimated ~11 million tonnes of kaolin mineral resources, representing in excess of 250 years of supply for the HPA plant. Altech continues to hold exploration licences E70/4708, E70/4716, E70/4717EL at Meckering.

Altech will receive proceeds from the sale in two tranches; Dana has already paid a non-refundable cash deposit of $250,000, the balance of $1,750,000 will be paid within 5 business days of the grant of mining lease M70/1334. The grant of M70/1334 is expected to take only a matter of months and will be progressed by the Company in accordance with standard procedures of the Department of Mines and Petroleum (WA).

Execution of the agreement also settles the dispute with Dana over the Company's termination of the Kaolin Mining Rights Deed (refer ASX announcement dated 29 March 2016 for details).

Managing Director, Iggy Tan said "the sale of E70/3923 is a win-win outcome for both parties. For Altech, it monetises the portion of the Company's Meckering kaolin deposit that is surplus to requirements for our HPA project, plus we receive a larger up-front cash injection compared to what was provided for in the Kaolin Mining Rights Deed. For Dana, the agreement delivers kaolin resources for the development of its bulk kaolin business and it removes the requirement for Dana to share M70/1334 with Altech, which was the previous arrangement".


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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